Faction Collective are a trendy ski maker and snow fashionista. They raised £775k on Crowdcube in 2016 and are now back for another £500k - although we'd say they need far more. They have valued themselves at an incredible £27m.
Our problem with them arises from the lack of transparency. The 2016 pitch on Crowdcube gave historic figures for 2014/15. They do not come close to the numbers in the accounts filed. You can find all our posts on Faction here.
For some reason Crowdcube have allowed them to include £371k of capital recently raised off the platform in this £500k raise. They claim this is for transparency! So at a £380k current total, it's clear they have only raised £9k on Crowdcube. Here, you can borrow our rag - now is that a little clearer?
The current Crowdcube pitch makes little if any reference to the previous raise and the like for like results. Why? Well we think the answer is pretty bleeding obvious. The company claim that the first half of 18/19 saw revenues of EU5m - which is great and they clearly want you to think that it's great. Well it is great, that is unless you compare it with the numbers they had for 18/19 when they were last on Crowdcube. We wont even go into the Ebitda numbers.
A little bit of honesty would do you no harm - try it. No one expects you to land all your projections but you might like to tell people why you have missed them by so far instead of simply ignoring them. That way you would garner more trust in the company management and sail through this round.
In future you will only be able to get this type of information if you join our new site ECF.Buzz - we are currently offering discounted membership via Indiegogo https://www.indiegogo.com/projects/ecf-buzz-the-crowd-investors-information-centre/x/19804529/
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